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Manitoba research and development tax credit
MN, Canada
Supports R&D expenditures for Manitoba-based corporations
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Professional, scientific and technical services
grant_single|grantors
- Government of Manitoba
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Manitoba Research and Development Tax Credit offers a credit equal to 15% of eligible expenditures for research and development activities conducted in Manitoba, with up to 100% of the credit refundable if undertaken under an eligible contract with a qualifying research institute. The program aims to support businesses with research and development activities, including current and capital expenditures, to foster innovation and economic growth in the province.
grant_single_labels|terms_and_conditions
This tax credit provides structured financing through a combination of refundable and non-refundable credits to support corporations' research and development expenses in Manitoba. The modalities facilitate versatile financial planning by enabling carry-back and carry-forward of unused credits.
- The credit is equal to 15% of eligible expenditures.
- The R&D tax credit is fully refundable if the project is conducted under an eligible contract with a qualifying research institute.
- If not contracted with such an institute, 50% of the tax credit is refundable, with the remainder being non-refundable.
- Unused non-refundable credits can be carried back to the three previous tax years.
- Unused non-refundable credits can also be carried forward to the next 20 tax years.
grant_single_labels|projects
The Manitoba research and development tax credit is available for projects involving eligible expenditures on R&D activities carried out within the province. Key activities typically involve scientific and technological investigation aimed at advancing industry knowledge or capabilities.
- Conducting experimental development or applied research to achieve technological or scientific advancements.
- Carrying out systematic investigations or searches carried on by means of experiment or analysis.
- Undertaking technical support work for experimental development, such as engineering or design.
- Allocating capital expenditures towards shared-use equipment necessary for R&D.
grant_single_labels|admissibility
Eligibility for the Manitoba research and development tax credit is determined based on specific criteria related to the applicant's status and their activities in the province.
- The corporation must have a permanent establishment in Manitoba.
- Eligible expenditures must be made for research and development carried out in Manitoba.
- Expenditures incurred must be either current expenditures or capital expenditures for depreciable property, excluding buildings or leasehold interests in buildings, and include first term and second term shared-use-equipment.
- The corporation may claim any repayments of government assistance related to eligible R&D expenditures.
- Unused non-refundable credits can be carried back three years or carried forward 20 years following the expenditure year.
grant_eligibility_criteria|who_can_apply
This tax credit is specifically for corporations with a permanent establishment in Manitoba that have incurred eligible research and development expenditures within the region. These corporations can claim a credit of 15% on the eligible expenditures, which include costs related to research and development activities performed in Manitoba.
grant_eligibility_criteria|eligible_expenses
The Manitoba research and development tax credit includes various eligible expenses incurred for research and development activities.
- Current expenditures related to research and development.
- Capital expenditures for depreciable property, excluding buildings and leasehold interests in buildings.
- First term and second term shared-use equipment.
- Repayments of government assistance related to eligible expenditures.
grant_eligibility_criteria|zone
Eligible companies for the Manitoba research and development tax credit must have a permanent establishment in Manitoba. This requirement ensures that the tax credit supports local economic development within the province.
- Companies with a permanent establishment in Manitoba.
grant_single_labels|register
Here are the steps to apply for the Manitoba Research and Development Tax Credit:
- Step 1: Identify Eligible Expenditures
- Determine the eligible research and development expenditures incurred in Manitoba including current and capital expenditures.
- Ensure these expenditures align with the criteria set by Manitoba Finance.
- Step 2: Complete Necessary Forms
- Fill out Schedule 380, Manitoba Research and Development Tax Credit, to report your eligible expenditures and calculate the credit amount.
- Complete Schedule 5, Tax Calculation Supplementary – Corporations, entering the non-refundable credit on line 606 and the refundable credit on line 613 as applicable.
- Step 3: File Income Tax Return
- Submit your completed income tax return along with Schedule 380 and Schedule 5 to the Canada Revenue Agency by the due date.
- Step 4: Document Submission Deadline
- Ensure all eligible expenditures are identified and submitted no later than 12 months after your income tax return is due for the tax year in which the expenditures were incurred.
- Step 5: Monitor Credit Application
- Track the processing of your tax credit application to ensure it is received and processed correctly.
- Contact Manitoba Finance if there are any issues or discrepancies with your submission.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The tax credit for R&D not conducted under an eligible contract is only partially refundable, with 50% being refundable and the remaining 50% being non-refundable.
- Unused non-refundable tax credits can be carried back up to 3 years or carried forward for up to 20 years.
- You have the option to renounce, in full or in part, the R&D tax credit for eligible expenditures incurred during the year.
- Eligible educational institutions involved in the program can be found listed on Manitoba Finance's website.
- Schedule 380 must be completed and filed with your tax return to claim the credit, identifying eligible expenditures within a specified time frame.
